09 August 2004

Major Japanese Automotive OEM Implements Multi-Million Dollar eMPower-based Digital Factory Initiative

HERZLIA, Israel--August 9, 2004-- Tecnomatix Technologies Ltd. (NASDAQ: TCNO) announced today that one of Asia’s leading automotive manufacturers has begun implementing a wide range of eMPower(TM) solutions for Manufacturing Process Management (MPM) in its Body-in-White (BIW) operations. In a multimillion-dollar deal signed earlier this year, the OEM is applying these eMPower solutions in such early operations stages as process planning and process verification, as well as for digital factory simulation and off-line robotics programming at the later planning phases. A key application of the company’s eMPower implementation supports the mixing of several automobile models per production line, a capability critical to the success of companies striving for product line diversification to meet the rapidly evolving demands of growing markets. The customer began implementing the eMPower solutions earlier this year; the implementation process will continue throughout the year, with complete deployment expected before year-end. "This manufacturer, already a household name in the automotive market worldwide, is aiming to triple its automotive sales in the United States over the next few years," said Jaron Lotan, president and CEO of Tecnomatix Technologies, the driving force in MPM. "The ability to plan and support production lines that mix several models gives automotive makers a significant competitive edge, allowing them the flexibility to react quickly to changing market requirements. We’re proud to be such a key part of this company’s strategy for dramatically growing their business to meet the demands of the marketplace. Leading manufacturers around the world, like this one, are adopting eMPower solutions to help them realize the efficiencies of multiple-model, multiple-site production. By implementing MPM strategies and deploying eMPower solutions they are enjoying higher levels of flexibility, more efficient planning and simulation, and faster ramp-up to volume, as well as increasing their control over operating costs - all while ensuring the highest levels of quality in both their manufacturing processes and the end product." Manufacturing Process Management and the Automotive Industry MPM is rapidly becoming the strategy of choice for the world’s leading manufacturers in the automotive and other industries. Industry analysts have called MPM "one of the major opportunities to reduce costs within an organization..." (Gartner). According to Kevin O’Marah in the AMR Research Alert, August 06, 2001, "Tecnomatix, provider of one of the only full tool suites for Manufacturing Process Management (MPM), brings credibility and a large number of Automotive OEMs and suppliers that have standardized on its eMPower product." And in its report, MPM Market Primed for Robust Growth (July 2002), Frost & Sullivan states, "The largest market that currently incorporates MPM software is the automotive industry...(which) is expected to be a key market for the MPM software as newer models are introduced in the next five years." eMPower solutions have gained wide acceptance throughout the automotive manufacturing industry. Tecnomatix counts among its major customers such global leaders as Ford, GM, BMW, DaimlerChrysler, Mazda, KIA Motors, Suzuki, and Volkswagen, among many others.

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